Average Medicare Advantage Premium Set to Fall to $12 a Month for 2027

The Centers for Medicare & Medicaid Services (CMS) announced on September 28, 2026 that the weighted average monthly Medicare Advantage (MA) premium is projected to fall from $14.37 in 2026 to $12.00 in 2027, a decline of about 16.5%. The projection came as part of CMS’s annual Medicare Advantage and Part D landscape release, published just over two weeks before this year’s Medicare Open Enrollment Period opens.

The numbers

Along with the lower average premium, CMS projects Medicare Advantage enrollment will reach about 34 million people in 2027, roughly 47.4% of everyone on Medicare. Plan availability is expected to stay relatively stable nationally: the total number of MA plans is projected to change only slightly, from 5,553 in 2026 to about 5,532 in 2027. CMS says 97% of beneficiaries will have access to 10 or more plan choices, and more than 99% will have access to at least one MA plan.

Plan choice stays wide

Medicare’s annual Open Enrollment Period runs October 15 through December 7, 2026, with any plan changes taking effect January 1, 2027. A relatively stable national plan count and a lower average premium are genuinely good news for seniors weighing their options this fall. But “average” and “stable nationally” can mask real changes in any one person’s specific plan or service area — a premium, network, or drug formulary can still shift significantly where you live even while the national number falls.

What Medicare Advantage still doesn’t cover

Medicare Advantage, Original Medicare, Part D, and Medigap all help pay for medical costs — doctor visits, hospital stays, prescriptions. None of them pay a death benefit, and none of them are designed to cover the cost of a funeral, which commonly runs $8,000 to $13,000 for most families. Final expense and whole life coverage sit entirely outside the Medicare system — they are unaffected by this premium projection, by plan-year changes, or by which MA plan you choose during open enrollment.

What this means for you

If you or a family member is reviewing Medicare options this fall, it is worth treating the lower national average as an invitation to compare plans rather than a reason to skip the review. Separately, if your final expense coverage hasn’t been checked in a while, open enrollment season is a natural moment to do both at once. A free life insurance calculator can give you a quick, no-obligation estimate, and our who we serve page covers the households we work with most, including retirees on a fixed income. This is general market information, not insurance advice, and not a guarantee of any specific plan’s premium or availability.

Sources

• Centers for Medicare & Medicaid Services — Medicare Advantage and Medicare Prescription Drug Programs Expected to Remain Stable in 2027

Frequently Asked Questions

Does Medicare Advantage include life insurance or a death benefit?

No. Medicare Advantage, Original Medicare, Part D, and Medigap all help pay medical and prescription costs while you are living. None of them pay a death benefit or cover final expenses such as a funeral.

If my Medicare Advantage premium is dropping, do I still need other coverage?

A lower average premium is good news for medical cost budgeting, but it has no effect on whether your family has a plan for final expenses or income replacement. Those are separate questions best answered with your own life insurance coverage, not your Medicare plan.

When is Medicare Open Enrollment for 2027 coverage?

Medicare’s annual Open Enrollment Period runs October 15 through December 7, 2026. Any plan changes made during that window take effect January 1, 2027.